Mortgage Rates

Mortgage is a loan taken for purchasing a house or some other property by keeping the same as security with the lender. In this you have to pay a monthly mortgage amount that is usually pre-decided to the lender. You also have to pay an interest on the total mortgage amount that you have borrowed. You have certain options to choose from for repaying the capital borrowed. These are repaying capital along with interest, repaying only the interest and not the capital, no repayment of either capital or interest and repaying partial capital and interest. These options may be available in some regions while they may not be available in other regions. The factors affecting the availability of these options are the tax laws in the region, the culture and the locality.



Conveyance: It refers to the legal document transferring to you the ownership of the unregistered land.

Disbursements: These are the fees paid to your solicitors for land registries, stamp duties and search fees.

Equity: This refers to the value of your property in the market with all the loans deducted.

Sealing Fee: This refers to the fee paid when the legal charge is released from over your property.


Types of Mortgage Rates

There are two different types of mortgage rates as mentioned below.

Variable Mortgage Rate:

Variable mortgage rate is also called as adjustable mortgage rate and in this the interest rate is not stable and is adjusted periodically on the basis of an index.

Fixed Mortgage Rate:

Fixed mortgage rate is the rate that remains constant for a particular set period. This may period may be for 2, 3, 4, 5 or even 10 years.


Pros and Cons of fixed and variable mortgage rates

Here are some pros and cons of fixed and variable mortgage rates.

Fixed Mortgage Rates:
Pros - In these you have a guarantee that your repayments are not going to increase for a particular period of time.
Cons - In case the rates fall you will end up paying high rates for a fixed period.

Variable Mortgage Rates:
Pros - In case the interest rates you will have to pay less.
Provides more flexibility.
Cons - You will have to pay more interest if the interest rates rise.